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adoni [48]
3 years ago
9

Mains Corporation owns equipment with a cost of $290,000 and accumulated depreciation at December 31, 2014 of $150,000. It is es

timated that the machinery will generate future cash flows of $165,000. The machinery has a fair value of $115,000. Mains should recognize a loss on impairment of...(a)$0.(b)$15,000.(c)$25,000.(d)$35,000.
Business
1 answer:
Firlakuza [10]3 years ago
5 0

Answer:

(a)$0

Explanation:

Since the book value is less than the generated future cash flows so there would not be any loss on impairment of the asset

The book value is computed below

= Owns value - accumulated depreciation

= $290,000 - $150,000

= $140,000

The book value is $140,000 and the generated cash flows are $165,000. So, no value would be recognized

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Answer:

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8 0
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5 0
3 years ago
Gabe's Granola Bars had coffee mugs created with their company logo and passed them out on a busy Saturday at a popular grocery
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I hope this helped!

5 0
3 years ago
Read 2 more answers
Suppose that in Problem 13 a Type 2 service objective of 95 percent is substituted for the stock-out cost of$ 12.80. Find the re
evablogger [386]

Answer:

(Q, R) = (1555, 1400)

shortage imputed = $0.388

Explanation:

Lot size-reorder point system is one of the multi period models. This system is denoted by decision variables (Q, R). This multi period model is implemented when there is uncertain demand in inventory control.

nevertheless, in the simple EOQ model, demand is known and fixed. But when the demand is random, these lot size-reorder point (Q, R) systems allow random demand.

There are two decision variables in a (Q, R) system:

Order quantity, Q and

Reorder point, R

Additional steps are attached as files

8 0
3 years ago
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